Cheniere Expects to Receive OK for Freeport LNG Project

Cheniere Energy reports that the Federal Energy Regulatory Commission (FERC) has concluded in a draft Environmental Impact Statement (EIS) that the approval of its affiliate's, Freeport LNG Development, L.P., proposed liquefied natural gas import terminal facilities, with the adoption of recommended mitigation measures, would have limited adverse environmental impact and would be an environmentally acceptable action. Freeport LNG expects to receive a final EIS and final FERC approval for its application to build a 1.5 Bcf per day LNG receiving terminal near Freeport, Texas, in early 2004. Cheniere owns a 30% limited partner interest in Freeport LNG.

The EIS provides for comment period which runs through Dec. 29, 2003. FERC will conduct a public scoping meeting to give interested parties an opportunity to comment on the draft EIS. The scoping meeting will be held on Dec. 9, 2003.

Cheniere Energy Inc. is a Houston-based developer of LNG receiving terminals and a Gulf of Mexico E&P company. Cheniere is a 30% limited partner in Freeport LNG Development, L.P., which is developing an LNG receiving terminal in Freeport, Texas. Cheniere is also developing two additional Gulf Coast LNG receiving terminals in Corpus Christi, Texas, and Sabine Pass, La. Cheniere conducts exploration for oil and gas in the Gulf using a regional database of 7,000 square miles of PSTM 3D seismic data. Cheniere owns 9% of Gryphon Exploration Company, along with Warburg, Pincus Equity Partners, L.P. which owns 91% after an investment of $85,000,000. Gryphon conducts exploration in the Gulf using a regional database of 20,000 square miles of PSTM 3D seismic data.